Tesco – Functional Areas

The Marketing Function at Tescos is concerned firstly with identifying their customers' needs and wants and then ensuring that they provide goods and services to meet those needs and wants. If Marketing fail to do this then the customers might be tempted away to other supermarkets such as Sainsbury's. In Tescos they identify customer's needs by setting up a survey, in this survey they would include thing like, what their jobs are and how much on average they earn.

After this they would be able to provide what customers needs are. Marketing would introduce a range of products to suit the customers according to there salary. These ranges are 'organic', 'Tescos Finest', 'Low Fat (diet)', 'Tesco value' and 'Healthy living'. Marketing at Tescos have created these ranges to suit customers who don't really earn much from their job. The range such as 'Tesco Value' provides products with a lower value but the quality of the product is low.

Marketing at Tescos offers 'club cards' to customers that can exchange the points that they earn from buying groceries etc into buying petrol or diesel for a cheaper price. Tescos also have a bonus card, the benefits for this type of card is that there is no interest payment back every year, 0% of Tesco purchases for the first 12 months from account opening. Tescos introduce these cards for customer benefits and to attract more customers.

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In order for Tescos to attract more and more customers, they need to advertise their promotions. For example, Tescos have introduced a new healthy living range; they would need to promote this by advertising on banners, T.V adverts or on the radio. They would try to make it sound really interesting and make it look good on images. Also they would make it a reasonable price at first when it comes out, then they would gradually make offers such as 'buy one get another free' or even raise the price a little bit more.

Marketing in Tescos have now expanded in their business as they have introduced more things such as car insurance, loans, mortgages and savings, the reasons why they had done this is all to do with attracting even more Customers, for this they would advertise more and make sure by doing all of this they would still keep customers happy.

Tescos use a 'unique selling point' to attract customers that normally don't buy from them; they do this buy making their prices cheaper, they do this to compete against other grocery stores like Sainsbury's and Asda. Making prices cheaper and also providing ranges like Healthy living, attracts more customers into buying their goods, as more people would like to by cheaper or more reasonable priced goods. But by doing this they must have limits, otherwise they would lose in profit.

In marketing, a company would use the '4ps' to be successful in it. The '4ps' is basically what a company would use for their aim and they would use it to carry out ideas. The '4ps' are 'product', 'price', 'place' and 'promotion'. For 'product' they must meet consumer's wants and needs, for 'price' it is set according to the lifestyle/income job etc, to the target audience and competition. It must reflect the quality of the product/service. 'Place' is about distributing a product or service from the manufacturer to the consumer. It must be convenient to consumers and quick, the location of distribution would be either on the Internet, the high street or it can be a regional distribution. 'Promotion' is the brand Awareness; they do this by using methods of communicating to promote the consumers from the Internet in a product or service.

The Human Resources department for Tescos deals with job vacancies. People that apply for a job in Tescos, send their C.V (Curriculum Vitae) to the Human Resources department, this would include, a life history, job history, achievements, and Skills. When the Human Resources receive this, they would pick out the best ones buy looking at there past experiences, achievements and skills, for achievements they would look at whether if; the applicant has a university degree, any awards or whether is they have the required grades for the job. After the Human Resources departments have done this then they would shortlist the right applicants for an interview.

The Human Resources shortlists the applicants as it would make it easier for them to select the best employee for their company. The Human Resources function ensures that personnel are used and developed in the most productive way, other than filling in a vacancy they also advertise the job, they do this by either posting on the Internet or advertising on the newspapers, after this is done, they would send out application forms to the people who apply for the job.

Retention is an important feature in Tescos. They employ the selected applicants for their specified jobs. Retention is basically keeping the employees happy and motivated at work, making sure that they don't fight, argue or any kind of insulting and the use of physical violence. Motivating staff and retaining them is vital for any business to run smoothly. Using an effective reward system would strongly help reduce the number of sick days and would increase the productivity. Benefits would help mostly on making the company different to other rivaled companies because if the company has better benefits than another, then the company with better benefits would be able to employ more staff. Read about NHS Functional Areas

In Tescos, the Human Resources would try and keep their employees by giving them benefits, such as a discount if the employee chooses to buy from Tescos, this would most defiantly keep staff motivated and happy, another benefit would be that Tescos could give their employees free gift vouchers to spend on groceries etc. Tescos could even give their staff a jobs raise, if they think that the employee has been working really hard. By doing this it would make them happier and motivated in their job.

In most cases employees would leave their job just because they are not happy in their position. Sometimes they feel less motivated because they are not being rewarded for their hard work, even though the employee(s), have been ill at times, but still come into work and work hard to pay for their family. Some other employees would leave their current job because they are attracted to another job. Changing jobs could be for many reasons; it can be that the present job is not challenging or that the employee doesn't feel happy or motivated there. It can also be because the newly attracted job has better benefits and more salary than the present job.

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